University of Phoenix parent gives insight into $1.1B sale

Apollo Education Group Inc. (Nasdaq: APOL), which is being acquired by a consortium of investors for $1.1 billion, has issued a 346-page preliminary proxy statement with the U.S. Securities and Exchange Commission spelling out the details of the proposed sale.

The preliminary proxy statement tells shareholders they will be entitled to receive $9.50 in cash for each share, which equates to 44 percent premium above the closing price of its stock on Jan. 8 when the Apollo board announced it would pursue strategic alternatives.

But in its prelimiary proxy, Apollo explains to shareholders why the merger agreement is fair.

So far, three class-action lawsuits have been filed in the Maricopa County Superior Court against Apollo and it directors, according to the preliminary proxy statement on file with the SEC. One of those was dismissed on March 4.

The document also spells out how the Phoenix company's top seven executives stand to get $21.7 million in golden parachutes when they sell their stock and get severance packages. But it's unclear who will stay and who will go. About $14 million of that money comprise payments for previously issued stock grants.